EX-99.2

EX-99.2 3 d818481dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

LOGO

SUPPLEMENTAL OPERATING AND FINANCIAL DATA

FOR THE QUARTER ENDED SEPTEMBER 30, 2019


		FORWARD-LOOKING STATEMENTS

This supplemental information contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and could materially affect actual results, performance or achievements. These factors include, without limitation, the ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the costs and availability of financing, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, regulatory changes, including changes to tax laws and regulations, and other risks and uncertainties detailed from time to time in our filings with the U.S. Securities and Exchange Commission. We do not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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		TABLE OF CONTENTS


	Page
Company Profile		4

Research Coverage		5

Selected Financial Information
Guidance		6
Financial Highlights		7
Consolidated Balance Sheets		8
Consolidated Statements of Income		9
Select Income Statement Data		10
Funds From Operations (“FFO”)		11
Funds Available for Distribution (“FAD”)		12
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”)		13
Net Operating Income (“NOI”)		14 - 16
Same Store Results		17 - 20
Consolidated Joint Ventures and Fund		21 - 23
Unconsolidated Joint Ventures		24 - 26
Unconsolidated Funds Summary		27
Capital Structure		28
Debt Analysis		29
Debt Maturities		30

Selected Property Data
Portfolio Summary		31
Same Store Leased Occupancy		32 - 33
Top Tenants and Industry Diversification		34
Leasing Activity		35 - 36
Lease Expirations		37 - 40
Cash Basis Capital Expenditures		41 - 42

Definitions		43 - 44

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		COMPANY PROFILE

Paramount Group, Inc. (“Paramount”) or (the “Company”) is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York, San Francisco, and Washington, D.C. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.

EXECUTIVE MANAGEMENT


Albert Behler		Chairman, Chief Executive Officer and President
Wilbur Paes		Executive Vice President, Chief Financial Officer and Treasurer
Peter Brindley		Executive Vice President, Leasing
David Zobel		Executive Vice President, Head of Acquisitions

BOARD OF DIRECTORS


Albert Behler		Director, Chairman of the Board
Thomas Armbrust		Director
Martin Bussmann		Director
Colin Dyer		Director
Dan Emmett		Director, Chair of Nominating and Corporate Governance Committee; Lead Independent Director
Lizanne Galbreath		Director, Chair of Compensation Committee
Karin Klein		Director
Peter Linneman		Director, Chair of Audit Committee
Katharina Otto-Bernstein		Director
Mark Patterson		Director

COMPANY INFORMATION


Corporate Headquarters	Investor Relations	Stock Exchange Listing	Trading Symbol
1633 Broadway, Suite 1801	IR@paramount-group.com	New York Stock Exchange	PGRE
New York, NY 10019	(212) 492-2298
(212) 237-3100

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		RESEARCH COVERAGE⁽¹⁾


James Feldman	Thomas Catherwood	Derek Johnston	Steve Sakwa
Bank of America Merrill Lynch	BTIG	Deutsche Bank	Evercore ISI
(646) 855-5808	(212) 738-6140	(904) 520-4973	(212) 446-9462
james.feldman@baml.com	tcatherwood@btig.com	derek.johnston@db.com	steve.sakwa@evercoreisi.com

Daniel Ismail	Haendel St. Juste	Vikram Malhotra	Blaine Heck
Green Street Advisors	Mizuho Securities USA Inc.	Morgan Stanley	Wells Fargo
(949) 640-8780	(212) 205-7860	(212) 761-7064	(443) 263-6529
dismail@greenst.com	haendel.st.juste@us.mizuho-sc.com	vikram.malhotra@morganstanley.com	blaine.heck@wellsfargo.com

⁽¹⁾

With the exception of Green Street Advisors, an independent research firm, the equity analysts listed above are those analysts that, according to First Call Corporation, have published research material on the Company and are listed as covering the Company. Please note that any opinions, estimates or forecasts regarding the Company’s performance made by such analysts do not represent the opinions, estimates or forecasts of the Company or its management. The Company does not by its reference above, imply its endorsement of or concurrence with any information, conclusions or recommendations made by any such analysts.

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		GUIDANCE

(unaudited and in thousands, except square feet, % and per share amounts)


	Full Year 2019
(Amounts per diluted share)	Low			High
Estimated net income attributable to common stockholders	$	0.05		$	0.07
Our share of real estate depreciation and amortization		0.90			0.90

Estimated Core FFO ⁽¹⁾⁽²⁾	$	0.95		$	0.97


Operating Assumptions:
Leasing Activity (square feet)		1,425,000			1,525,000
PGRE’s share of Same Store Leased % ⁽²⁾ at year end		96.0	%		96.4	%
Increase in PGRE’s share of Same Store Cash NOI ⁽²⁾		6.5	%		7.5	%
Increase in PGRE’s share of Same Store NOI ⁽²⁾		2.5	%		3.5	%

Financial Assumptions (at share):
Estimated net income	$	13,000		$	19,000
Depreciation and amortization		231,000			231,000
General and administrative expenses		64,500			63,500
Interest and debt expense, including amortization of deferred financing costs		134,500			133,500
Fee income, net of income taxes		(21,500	)		(22,500	)
Gain on sale of real estate		(1,000	)		(1,000	)
Other, net (primarily interest income)		(4,000	)		(4,000	)

NOI ⁽²⁾		416,500			419,500
Straight-line rent adjustments and above and below-market lease revenue, net		(45,500	)		(46,500	)

Cash NOI ⁽²⁾	$	371,000		$	373,000

⁽¹⁾

We are increasing our Estimated Core FFO Guidance for the full year of 2019, which is reconciled above to estimated net income attributable to common stockholders per diluted share in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The estimated net income attributable to common stockholders per diluted share is not a projection and is being provided solely to satisfy the disclosure requirements of the U.S. Securities and Exchange Commission (“SEC”). Except as described above, these estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and the earnings impact of the events referenced in our earnings release issued on November 6, 2019 and otherwise referenced during our conference call scheduled for November 7, 2019. These estimates do not include the impact on operating results from possible future property acquisitions or dispositions, capital markets activity or realized and unrealized gains or losses on real estate fund investments. The estimates set forth above may be subject to fluctuations as a result of several factors, including straight-line rent adjustments and the amortization of above and below-market leases. There can be no assurance that our actual results will not differ materially from the estimates set forth above.

⁽²⁾	See page 43 for our definition of this measure.

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		FINANCIAL HIGHLIGHTS

(unaudited and in thousands, except per share amounts)


	Three Months Ended						Nine Months Ended
SELECTED FINANCIAL DATA	September 30, 2019		September 30, 2018		June 30, 2019		September 30, 2019		September 30, 2018
Net income attributable to common stockholders	$	7,082	$	37,531	$	2,455	$	13,246	$	3,829
Per share - basic and diluted	$	0.03	$	0.16	$	0.01	$	0.06	$	0.02

Core FFO attributable to common stockholders⁽¹⁾	$	58,540	$	57,748	$	53,239	$	168,892	$	170,610
Per share - diluted	$	0.25	$	0.24	$	0.23	$	0.72	$	0.71

PGRE’s share of Cash NOI ⁽¹⁾	$	93,551	$	88,717	$	91,812	$	278,432	$	263,152
PGRE’s share of NOI ⁽¹⁾	$	105,718	$	104,858	$	103,138	$	313,799	$	311,684


Same Store Cash NOI ⁽¹⁾	% Change
Three Months Ended September 30, 2019 vs. September 30, 2018		4.2	%
Nine Months Ended September 30, 2019 vs. September 30, 2018		7.8	%


Same Store NOI ⁽¹⁾	% Change
Three Months Ended September 30, 2019 vs. September 30, 2018		1.8	%
Nine Months Ended September 30, 2019 vs. September 30, 2018		3.0	%

PORTFOLIO STATISTICS (at PGRE Share)


	As of
	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
Leased % ⁽¹⁾		96.5	%		96.7	%		96.0	%		96.4	%		96.4	%


Same Store Leased % ⁽¹⁾	% Change
September 30, 2019 vs. June 30, 2019		(0.1	%)
September 30, 2019 vs. December 31, 2018		0.3	%


Same Store Leased % ⁽¹⁾	% Change
September 30, 2019 vs. September 30, 2018		0.2	%

COMMON SHARE DATA


	Three Months Ended
	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
Share Price:
High	$	14.42		$	15.11		$	15.03		$	15.16		$	16.05
Low	$	12.77		$	13.53		$	12.18		$	12.19		$	14.83
Closing (end of period)	$	13.35		$	14.01		$	14.19		$	12.56		$	15.09

Dividends per common share	$	0.10		$	0.10		$	0.10		$	0.10		$	0.10
Annualized dividends per common share	$	0.40		$	0.40		$	0.40		$	0.40		$	0.40
Dividend yield (on closing share price)		3.0	%		2.9	%		2.8	%		3.2	%		2.7	%

⁽¹⁾	See page 43 for our definition of this measure.

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		CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)


	September 30, 2019			December 31, 2018
Assets:
Real estate, at cost:
Land	$	2,018,805		$	2,065,206
Buildings and improvements		5,984,703			6,036,445

		8,003,508			8,101,651
Accumulated depreciation and amortization		(764,151	)		(644,639	)

Real estate, net		7,239,357			7,457,012
Cash and cash equivalents		298,066			339,653
Restricted cash		25,372			25,756
Investments in unconsolidated joint ventures		231,983			78,863
Investments in unconsolidated real estate funds		11,582			10,352
Preferred equity investments		—			36,042
Accounts and other receivables, net		20,400			20,076
Deferred rent receivable		295,520			267,456
Deferred charges, net		127,427			117,858
Intangible assets, net		222,709			270,445
Other assets		107,334			132,465

Total assets	$	8,579,750		$	8,755,978


Liabilities:
Notes and mortgages payable, net	$	3,576,734		$	3,566,917
Revolving credit facility		—			—
Accounts payable and accrued expenses		119,362			124,334
Dividends and distributions payable		25,307			25,902
Intangible liabilities, net		78,836			95,991
Other liabilities		76,768			51,170

Total liabilities		3,877,007			3,864,314


Equity:
Paramount Group, Inc. equity		3,850,790			4,000,800
Noncontrolling interests in:
Consolidated joint ventures		363,211			394,995
Consolidated real estate fund		72,241			66,887
Operating Partnership		416,501			428,982

Total equity		4,702,743			4,891,664


Total liabilities and equity	$	8,579,750		$	8,755,978

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		CONSOLIDATED STATEMENTS OF INCOME

(unaudited and in thousands, except per share amounts)


	Three Months Ended									Nine Months Ended
	September 30, 2019			September 30, 2018			June 30, 2019			September 30, 2019			September 30, 2018
Revenues:
Rental revenue ⁽¹⁾	$	188,079		$	185,074		$	181,140		$	551,835		$	545,475
Fee and other income ⁽¹⁾		10,238			7,522			7,443			26,857			22,811

Total revenues		198,317			192,596			188,583			578,692			568,286


Expenses:
Operating		71,648			69,811			67,572			207,601			206,435
Depreciation and amortization		63,058			64,610			62,625			188,772			194,541
General and administrative ⁽¹⁾		16,319			14,452			17,695			51,457			44,278
Transaction related costs		786			450			182			1,704			863

Total expenses		151,811			149,323			148,074			449,534			446,117


Other income (expense):
(Loss) income from unconsolidated joint ventures		(1,332	)		472			(456	)		(2,815	)		2,931
Income (loss) from unconsolidated real estate funds		206			(188	)		19			271			(268	)
Interest and other income, net ⁽¹⁾		1,222			2,778			2,583			7,705			6,888
Interest and debt expense ⁽¹⁾		(37,325	)		(37,105	)		(37,213	)		(111,462	)		(109,996	)
Real estate impairment loss		—			—			—			—			(46,000	)
Gain on sale of real estate		1,140			36,845			—			1,140			36,845

Net income before income taxes		10,417			46,075			5,442			23,997			12,569
Income tax benefit (expense)		583			(1,814	)		(268	)		(823	)		(2,171	)

Net income		11,000			44,261			5,174			23,174			10,398
Less net (income) loss attributable to noncontrolling interests in:
Consolidated joint ventures		(3,051	)		(2,713	)		(2,408	)		(8,253	)		(5,520	)
Consolidated real estate fund		(109	)		(86	)		(53	)		(256	)		(668	)
Operating Partnership		(758	)		(3,931	)		(258	)		(1,419	)		(381	)

Net income attributable to common stockholders	$	7,082		$	37,531		$	2,455		$	13,246		$	3,829

*Per diluted share*	$	*0.03*		$	*0.16*		$	*0.01*		$	*0.06*		$	*0.02*


Capitalized internal leasing costs	$	—		$	1,169		$	—		$	—		$	4,276

⁽¹⁾	See page 10 for details.

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		SELECT INCOME STATEMENT DATA

(unaudited and in thousands)


	Three Months Ended						Nine Months Ended
	September 30, 2019		September 30, 2018		June 30, 2019		September 30, 2019		September 30, 2018
Rental Revenue:
Property rentals	$	154,705	$	148,359	$	153,345	$	459,278	$	442,586
Tenant reimbursements		17,992		15,579		14,536		48,143		42,989
Straight-line rent adjustments		11,297		15,688		10,532		33,407		45,671
Amortization of above and below-market leases, net		2,552		3,887		2,727		8,555		12,611
Lease termination income		1,533		1,561		—		2,452		1,618

Total rental revenue	$	188,079	$	185,074	$	181,140	$	551,835	$	545,475


	Three Months Ended						Nine Months Ended
	September 30, 2019		September 30, 2018		June 30, 2019		September 30, 2019		September 30, 2018
Fee and Other Income:
Property management	$	1,692	$	1,476	$	1,599	$	4,933	$	4,468
Asset management		2,665		2,222		2,290		7,273		5,655
Acquisition and disposition		2,104		—		—		3,435		1,750
Other		698		381		324		1,730		1,080

Total fee income		7,159		4,079		4,213		17,371		12,953
Other (primarily parking income and tenant requested services, including overtime heating and cooling)		3,079		3,443		3,230		9,486		9,858

Total fee and other income	$	10,238	$	7,522	$	7,443	$	26,857	$	22,811


	Three Months Ended						Nine Months Ended
	September 30, 2019		September 30, 2018		June 30, 2019		September 30, 2019		September 30, 2018
General and Administrative:
Cash general and administrative	$	10,995	$	9,132	$	11,770	$	30,537	$	27,753
Non-cash general and administrative—stock-based compensation expense		5,174		4,330		5,083		17,859		15,245
Mark-to-market of deferred compensation plan liabilities (offset by an increase in the mark-to-market of plan assets, which is included in “interest and other income”)		150		990		842		3,061		1,280

Total general and administrative	$	16,319	$	14,452	$	17,695	$	51,457	$	44,278


	Three Months Ended						Nine Months Ended
	September 30, 2019		September 30, 2018		June 30, 2019		September 30, 2019		September 30, 2018
Interest and Other Income, net:
Interest income, net	$	1,072	$	858	$	1,741	$	4,190	$	2,862
Mark-to-market of deferred compensation plan assets (offset by an increase in the mark-to-market of plan liabilities, which is included in “general and administrative” expenses)		150		990		842		3,061		1,280
Preferred equity investment income ⁽¹⁾		—		930		—		454		2,746

Total interest and other income, net	$	1,222	$	2,778	$	2,583	$	7,705	$	6,888

(1) Represents 100% of the investment income from PGRESS Equity Holdings, L.P., of which our 24.4% share is $227 for the three months ended September 30, 2018 and $111 and $669 for the nine months ended September 30, 2019 and 2018, respectively. On March 1, 2019, our only remaining preferred equity investment was redeemed.
	Three Months Ended						Nine Months Ended
	September 30, 2019		September 30, 2018		June 30, 2019		September 30, 2019		September 30, 2018
Interest and Debt Expense:
Interest expense	$	34,501	$	34,353	$	34,388	$	103,012	$	101,729
Amortization of deferred financing costs		2,824		2,752		2,825		8,450		8,267

Total interest and debt expense	$	37,325	$	37,105	$	37,213	$	111,462	$	109,996

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		FFO

(unaudited and in thousands, except share and per share amounts)


	Three Months Ended									Nine Months Ended
	September 30, 2019			September 30, 2018			June 30, 2019			September 30, 2019			September 30, 2018
Reconciliation of net income to FFO and Core FFO:
Net income	$	11,000		$	44,261		$	5,174		$	23,174		$	10,398
Real estate depreciation and amortization (including our share of unconsolidated joint ventures)		67,461			66,533			66,069			199,595			200,404
Real estate impairment loss		—			—			—			—			46,000
Gain on sale of real estate		(1,140	)		(36,845	)		—			(1,140	)		(36,845	)

FFO ⁽¹⁾		77,321			73,949			71,243			221,629			219,957
Less FFO attributable to noncontrolling interests in:
Consolidated joint ventures		(12,142	)		(12,432	)		(11,277	)		(35,167	)		(33,479	)
Consolidated real estate fund		(109	)		(86	)		(53	)		(256	)		(668	)

FFO attributable to Paramount Group Operating Partnership		65,070			61,431			59,913			186,206			185,810
Less FFO attributable to noncontrolling interests in Operating Partnership		(6,294	)		(5,825	)		(5,705	)		(17,997	)		(17,616	)

FFO attributable to common stockholders⁽¹⁾	$	58,776		$	55,606		$	54,208		$	168,209		$	168,194

Per diluted share	$	0.25		$	0.23		$	0.23		$	0.72		$	0.70


FFO	$	77,321		$	73,949		$	71,243		$	221,629		$	219,957
Non-core items:
Our share of (distributions from 712 Fifth Avenue in excess of earnings) and earnings in excess of distributions		(976	)		398			(1,331	)		(1,037	)		81
Other, net		715			1,968			260			1,798			2,586

Core FFO ⁽¹⁾		77,060			76,315			70,172			222,390			222,624
Less Core FFO attributable to noncontrolling interests in:
Consolidated joint ventures		(12,142	)		(12,432	)		(11,277	)		(35,167	)		(33,479	)
Consolidated real estate fund		(109	)		(86	)		(53	)		(256	)		(668	)

Core FFO attributable to Paramount Group Operating Partnership		64,809			63,797			58,842			186,967			188,477
Less Core FFO attributable to noncontrolling interests in Operating Partnership		(6,269	)		(6,049	)		(5,603	)		(18,075	)		(17,867	)

Core FFO attributable to common stockholders ⁽¹⁾	$	58,540		$	57,748		$	53,239		$	168,892		$	170,610

Per diluted share	$	0.25		$	0.24		$	0.23		$	0.72		$	0.71

Reconciliation of weighted average shares outstanding:
Weighted average shares outstanding		231,197,838			240,447,921			234,329,904			232,974,210			240,365,882
Effect of dilutive securities		32,101			41,217			25,960			30,707			25,302

Denominator for FFO and Core FFO per diluted share		231,229,939			240,489,138			234,355,864			233,004,917			240,391,184

(1)	See page 43 for our definition of this measure.

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		FAD

(unaudited and in thousands)


	Three Months Ended									Nine Months Ended
	September 30, 2019			September 30, 2018			June 30, 2019			September 30, 2019			September 30, 2018
Reconciliation of Core FFO to FAD:
Core FFO	$	77,060		$	76,315		$	70,172		$	222,390		$	222,624
Add (subtract) adjustments to arrive at FAD:
Amortization of stock-based compensation expense		5,174			4,330			5,083			17,859			15,245
Amortization of deferred financing costs (including our share of unconsolidated joint ventures)		2,980			2,824			2,977			8,883			8,486
Amortization of above and below-market leases, net (including our share of unconsolidated joint ventures)		(2,768	)		(3,724	)		(2,725	)		(8,713	)		(12,122	)
Expenditures to maintain assets		(4,680	)		(2,858	)		(5,291	)		(15,170	)		(9,056	)
Second generation tenant improvements and leasing commissions		(11,035	)		(27,993	)		(14,380	)		(40,921	)		(63,368	)
Straight-line rent adjustments (including our share of unconsolidated joint ventures)		(11,484	)		(15,752	)		(10,857	)		(34,119	)		(45,802	)

FAD ⁽¹⁾		55,247			33,142			44,979			150,209			116,007
Less FAD attributable to noncontrolling interests in:
Consolidated joint ventures		(5,291	)		(5,503	)		(5,614	)		(16,589	)		(18,630	)
Consolidated real estate fund		(109	)		(86	)		(53	)		(256	)		(668	)

FAD attributable to Paramount Group Operating Partnership		49,847			27,553			39,312			133,364			96,709
Less FAD attributable to noncontrolling interests in Operating Partnership		(4,821	)		(2,612	)		(3,743	)		(12,895	)		(9,163	)

FAD attributable to common stockholders ^(1) (2)	$	45,026		$	24,941		$	35,569		$	120,469		$	87,546


Dividends declared on common stock	$	22,795		$	24,046		$	23,439		$	69,682		$	72,150

⁽¹⁾	See page 43 for our definition of this measure.

⁽²⁾	FAD attributable to common stockholders is not necessarily indicative of future FAD amounts due to fluctuations in the timing of payments for tenant improvements and leasing commissions versus rents received from leases for which such costs are incurred.

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		EBITDAre

(unaudited and in thousands)


	Three Months Ended									Nine Months Ended
	September 30, 2019			September 30, 2018			June 30, 2019			September 30, 2019			September 30, 2018
Reconciliation of net income to EBITDAre and Adjusted EBITDAre:
Net income	$	11,000		$	44,261		$	5,174		$	23,174		$	10,398
Add (subtract) adjustments to arrive at EBITDAre and Adjusted EBITDAre:
Depreciation and amortization (including our share of unconsolidated joint ventures)		67,461			66,533			66,069			199,595			200,404
Interest and debt expense (including our share of unconsolidated joint ventures)		40,270			38,835			39,827			119,263			115,092
Income tax (benefit) expense (including our share of unconsolidated joint ventures)		(584	)		1,814			270			825			2,172
Real estate impairment loss		—			—			—			—			46,000
Gain on sale of real estate		(1,140	)		(36,845	)		—			(1,140	)		(36,845	)

EBITDAre⁽¹⁾		117,007			114,598			111,340			341,717			337,221
Less EBITDAre attributable to noncontrolling interests in:
Consolidated joint ventures		(18,829	)		(19,128	)		(17,919	)		(55,077	)		(53,383	)
Consolidated real estate fund		(109	)		(115	)		(54	)		(261	)		(669	)

PGRE’s share of EBITDAre ⁽¹⁾	$	98,069		$	95,355		$	93,367		$	286,379		$	283,169


EBITDAre	$	117,007		$	114,598		$	111,340		$	341,717		$	337,221
Add (subtract) adjustments to arrive at Adjusted EBITDAre:
Our share of (distributions from 712 Fifth Avenue in excess of earnings) and earnings in excess of distributions		(976	)		398			(1,331	)		(1,037	)		81
Other, net		513			592			156			1,303			469

Adjusted EBITDAre ⁽¹⁾		116,544			115,588			110,165			341,983			337,771
Less Adjusted EBITDAre attributable to noncontrolling interests in:
Consolidated joint ventures		(18,829	)		(19,128	)		(17,919	)		(55,077	)		(53,383	)

PGRE’s share of Adjusted EBITDAre ⁽¹⁾	$	97,715		$	96,460		$	92,246		$	286,906		$	284,388

⁽¹⁾	See page 43 for our definition of this measure.

- 13 -


		NOI

(unaudited and in thousands)


	Three Months Ended									Nine Months Ended
	September 30, 2019			September 30, 2018			June 30, 2019			September 30, 2019			September 30, 2018
Reconciliation of net income to NOI and Cash NOI:
Net income	$	11,000		$	44,261		$	5,174		$	23,174		$	10,398
Add (subtract) adjustments to arrive at NOI and Cash NOI:
Depreciation and amortization		63,058			64,610			62,625			188,772			194,541
General and administrative		16,319			14,452			17,695			51,457			44,278
Interest and debt expense		37,325			37,105			37,213			111,462			109,996
Income tax (benefit) expense		(583	)		1,814			268			823			2,171
NOI from unconsolidated joint ventures		4,973			4,448			4,185			14,569			13,757
Fee income		(7,159	)		(4,079	)		(4,213	)		(17,371	)		(12,953	)
Interest and other income, net		(1,222	)		(2,778	)		(2,583	)		(7,705	)		(6,888	)
Real estate impairment loss		—			—			—			—			46,000
Gain on sale of real estate		(1,140	)		(36,845	)		—			(1,140	)		(36,845	)
Other, net		1,912			166			619			4,248			(1,800	)

NOI ⁽¹⁾		124,483			123,154			120,983			368,289			362,655
Less NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(18,765	)		(18,303	)		(17,839	)		(54,513	)		(50,991	)
Consolidated real estate fund		—			7			(6	)		23			20

PGRE’s share of NOI⁽¹⁾	$	105,718		$	104,858		$	103,138		$	313,799		$	311,684


NOI	$	124,483		$	123,154		$	120,983		$	368,289		$	362,655
Less:
Straight-line rent adjustments (including our share of unconsolidated joint ventures)		(11,484	)		(15,752	)		(10,857	)		(34,119	)		(45,802	)
Amortization of above and below-market leases, net (including our share of unconsolidated joint ventures)		(2,768	)		(3,724	)		(2,725	)		(8,713	)		(12,122	)

Cash NOI⁽¹⁾		110,231			103,678			107,401			325,457			304,731
Less Cash NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(16,680	)		(14,968	)		(15,583	)		(47,048	)		(41,599	)
Consolidated real estate fund		—			7			(6	)		23			20

PGRE’s share of Cash NOI ⁽¹⁾	$	93,551		$	88,717		$	91,812		$	278,432		$	263,152

⁽¹⁾	See page 43 for our definition of this measure.

- 14 -


		NOI

(unaudited and in thousands)


	Three Months Ended September 30, 2019
	Total			New York			San Francisco			Washington, D.C.			Other
Reconciliation of net income (loss) to NOI and Cash NOI:
Net income (loss)	$	11,000		$	8,905		$	10,361		$	3,040		$	(11,306	)
Add (subtract) adjustments to arrive at NOI and Cash NOI:
Depreciation and amortization		63,058			40,052			19,821			2,362			823
General and administrative		16,319			—			—			—			16,319
Interest and debt expense		37,325			23,818			12,383			—			1,124
Income tax benefit		(583	)		—			—			—			(583	)
NOI from unconsolidated joint ventures		4,973			2,776			2,106			—			91
Fee income		(7,159	)		—			—			—			(7,159	)
Interest and other income, net		(1,222	)		—			(236	)		—			(986	)
Gain on sale of real estate		(1,140	)		—			—			(1,140	)		—
Other, net		1,912			(235	)		1,602			—			545

NOI ⁽¹⁾		124,483			75,316			46,037			4,262			(1,132	)
Less NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(18,765	)		—			(18,765	)		—			—

PGRE’s share of NOI for the three months ended September 30, 2019	$	105,718		$	75,316		$	27,272		$	4,262		$	(1,132	)

PGRE’s share of NOI for the three months ended September 30, 2018	$	104,858		$	74,638		$	24,059		$	7,903		$	(1,742	)


NOI	$	124,483		$	75,316		$	46,037		$	4,262		$	(1,132	)
Add (subtract) adjustments to arrive at Cash NOI:
Straight-line rent adjustments (including our share of unconsolidated joint ventures)		(11,484	)		(8,593	)		(2,941	)		72			(22	)
Amortization of above and below-market leases, net (including our share of unconsolidated joint ventures)		(2,768	)		436			(3,223	)		19			—

Cash NOI⁽¹⁾		110,231			67,159			39,873			4,353			(1,154	)
Less Cash NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(16,680	)		—			(16,680	)		—			—

PGRE’s share of Cash NOI for the three months ended September 30, 2019	$	93,551		$	67,159		$	23,193		$	4,353		$	(1,154	)

PGRE’s share of Cash NOI for the three months ended September 30, 2018	$	88,717		$	65,918		$	19,174		$	5,389		$	(1,764	)

⁽¹⁾	See page 43 for our definition of this measure.

- 15 -


		NOI

(unaudited and in thousands)


	Nine Months Ended September 30, 2019
	Total			New York			San Francisco			Washington, D.C.			Other
Reconciliation of net income (loss) to NOI and Cash NOI:
Net income (loss)	$	23,174		$	27,178		$	26,495		$	7,202		$	(37,701	)
Add (subtract) adjustments to arrive at NOI and Cash NOI:
Depreciation and amortization		188,772			120,002			59,257			7,087			2,426
General and administrative		51,457			—			—			—			51,457
Interest and debt expense		111,462			71,444			36,822			—			3,196
Income tax expense		823			—			19			—			804
NOI from unconsolidated joint ventures		14,569			10,319			4,019			—			231
Fee income		(17,371	)		—			—			—			(17,371	)
Interest and other income, net		(7,705	)		—			(595	)		—			(7,110	)
Gain on sale of real estate		(1,140	)		—			—			(1,140	)		—
Other, net		4,248			(854	)		3,723			—			1,379

NOI ⁽¹⁾		368,289			228,089			129,740			13,149			(2,689	)
Less NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(54,513	)		—			(54,513	)		—			—
Consolidated real estate funds		23			—			—			—			23

PGRE’s share of NOI nine months ended September 30, 2019	$	313,799		$	228,089		$	75,227		$	13,149		$	(2,666	)

PGRE’s share of NOI nine months ended September 30, 2018	$	311,684		$	220,524		$	69,450		$	27,206		$	(5,496	)


NOI	$	368,289		$	228,089		$	129,740		$	13,149		$	(2,689	)
Add (subtract) adjustments to arrive at Cash NOI:
Straight-line rent adjustments (including our share of unconsolidated joint ventures)		(34,119	)		(27,142	)		(7,243	)		243			23
Amortization of above and below-market leases, net (including our share of unconsolidated joint ventures)		(8,713	)		1,391			(10,163	)		59			—

Cash NOI⁽¹⁾		325,457			202,338			112,334			13,451			(2,666	)
Less Cash NOI attributable to noncontrolling interests in:
Consolidated joint ventures		(47,048	)		—			(47,048	)		—			—
Consolidated real estate funds		23			—			—			—			23

PGRE’s share of Cash NOI for the nine months ended September 30, 2019	$	278,432		$	202,338		$	65,286		$	13,451		$	(2,643	)

PGRE’s share of Cash NOI for the nine months ended September 30, 2018	$	263,152		$	191,889		$	52,787		$	23,957		$	(5,481	)

⁽¹⁾	See page 43 for our definition of this measure.

- 16 -


		SAME STORE RESULTS

(unaudited and in thousands)


	Three Months Ended September 30, 2019
SAME STORE CASH NOI ⁽¹⁾	Total			New York			San Francisco			Washington, D.C.			Other
PGRE’s share of Cash NOI for the three months ended September 30, 2019	$	93,551		$	67,159		$	23,193		$	4,353		$	(1,154	)
Acquisitions ⁽²⁾		(1,606	)		—			(1,606	)		—			—
Dispositions		—			—			—			—			—
Lease termination income (including our share of unconsolidated joint ventures)		(751	)		—			(751	)		—			—
Other, net		172			174			(2	)		—			—

PGRE’s share of Same Store Cash NOI for the three months ended September 30, 2019	$	91,366		$	67,333		$	20,834		$	4,353		$	(1,154	)


	Three Months Ended September 30, 2018
	Total			New York			San Francisco			Washington, D.C.			Other
PGRE’s share of Cash NOI for the three months ended September 30, 2018	$	88,717		$	65,918		$	19,174		$	5,389		$	(1,764	)
Acquisitions		—			—			—			—			—
Dispositions ⁽³⁾		(568	)		—			—			(568	)		—
Lease termination income (including our share of unconsolidated joint ventures)		(506	)		(28	)		(478	)		—			—
Other, net		56			52			4			—			—

PGRE’s share of Same Store Cash NOI for the three months ended September 30, 2018	$	87,699		$	65,942		$	18,700		$	4,821		$	(1,764	)


Increase (decrease) in PGRE’s share of Same Store Cash NOI	$	3,667		$	1,391		$	2,134		$	(468	)	$	610
% Increase (decrease)		4.2	%		2.1	%		11.4	%		(9.7	%)

⁽¹⁾	See page 43 for our definition of this measure.

⁽²⁾	Represents our share of Cash NOI attributable to acquired properties (111 Sutter Street and 55 Second Street in San Francisco) for the months in which they were not owned by us in both reporting periods.

⁽³⁾	Represents our share of Cash NOI attributable to sold properties (2099 Pennsylvania Avenue and 425 Eye Street in Washington, D.C.) for the months in which they were not owned by us in both reporting periods.

- 17 -


		SAME STORE RESULTS

(unaudited and in thousands)


	Three Months Ended September 30, 2019
SAME STORE NOI ⁽¹⁾	Total			New York			San Francisco			Washington, D.C.			Other
PGRE’s share of NOI for the three months ended September 30, 2019	$	105,718		$	75,316		$	27,272		$	4,262		$	(1,132	)
Acquisitions ⁽²⁾		(2,106	)		—			(2,106	)		—			—
Dispositions		—			—			—			—			—
Lease termination income (including our share of unconsolidated joint ventures)		(751	)		—			(751	)		—			—
Other, net		172			174			(2	)		—			—

PGRE’s share of Same Store NOI for the three months ended September 30, 2019	$	103,033		$	75,490		$	24,413		$	4,262		$	(1,132	)


	Three Months Ended September 30, 2018
	Total			New York			San Francisco			Washington, D.C.			Other
PGRE’s share of NOI for the three months ended September 30, 2018	$	104,858		$	74,638		$	24,059		$	7,903		$	(1,742	)
Acquisitions		—			—			—			—			—
Dispositions ⁽³⁾		(3,209	)		—			—			(3,209	)		—
Lease termination income (including our share of unconsolidated joint ventures)		(506	)		(28	)		(478	)		—			—
Other, net		56			52			4			—			—

PGRE’s share of Same Store NOI for the three months ended September 30, 2018	$	101,199		$	74,662		$	23,585		$	4,694		$	(1,742	)


Increase (decrease) in PGRE’s share of Same Store NOI	$	1,834		$	828		$	828		$	(432	)	$	610
% Increase (decrease)		1.8	%		1.1	%		3.5	%		(9.2	%)

⁽¹⁾	See page 43 for our definition of this measure.

⁽²⁾	Represents our share of NOI attributable to acquired properties (111 Sutter Street and 55 Second Street in San Francisco) for the months in which they were not owned by us in both reporting periods.

⁽³⁾	Represents our share of NOI attributable to sold properties (2099 Pennsylvania Avenue and 425 Eye Street in Washington, D.C.) for the months in which they were not owned by us in both reporting periods.

- 18 -


		SAME STORE RESULTS

(unaudited and in thousands)


	Nine Months Ended September 30, 2019
SAME STORE CASH NOI ⁽¹⁾	Total			New York			San Francisco			Washington, D.C.			Other
PGRE’s share of Cash NOI for the nine months ended September 30, 2019	$	278,432		$	202,338		$	65,286		$	13,451		$	(2,643	)
Acquisitions ⁽²⁾		(3,117	)		—			(3,117	)		—			—
Dispositions		—			—			—			—			—
Lease termination income (including our share of unconsolidated joint ventures)		(3,097	)		(2,346	)		(751	)		—			—
Other, net		448			473			(25	)		—			—

PGRE’s share of Same Store Cash NOI for the nine months ended September 30, 2019	$	272,666		$	200,465		$	61,393		$	13,451		$	(2,643	)


	Nine Months Ended September 30, 2018
	Total			New York			San Francisco			Washington, D.C.			Other
PGRE’s share of Cash NOI for the nine months ended September 30, 2018	$	263,152		$	191,889		$	52,787		$	23,957		$	(5,481	)
Acquisitions		—			—			—			—			—
Dispositions ⁽³⁾		(9,773	)		—			—			(9,773	)		—
Lease termination income (including our share of unconsolidated joint ventures)		(750	)		(272	)		(478	)		—			—
Other, net		230			226			4			—			—

PGRE’s share of Same Store Cash NOI for the nine months ended September 30, 2018	$	252,859		$	191,843		$	52,313		$	14,184		$	(5,481	)


Increase (decrease) in PGRE’s share of Same Store Cash NOI	$	19,807		$	8,622		$	9,080		$	(733	)	$	2,838
% Increase (decrease)		7.8	%		4.5	%		17.4	%		(5.2	%)

⁽¹⁾	See page 43 for our definition of this measure.

⁽²⁾	Represents our share of Cash NOI attributable to acquired properties (111 Sutter Street and 55 Second Street in San Francisco) for the months in which they were not owned by us in both reporting periods.

⁽³⁾	Represents our share of Cash NOI attributable to sold properties (2099 Pennsylvania Avenue and 425 Eye Street in Washington, D.C.) for the months in which they were not owned by us in both reporting periods.

- 19 -


		SAME STORE RESULTS

(unaudited and in thousands)


	Nine Months Ended September 30, 2019
SAME STORE NOI ⁽¹⁾	Total			New York			San Francisco			Washington, D.C.			Other
PGRE’s share of NOI for the nine months ended September 30, 2019	$	313,799		$	228,089		$	75,227		$	13,149		$	(2,666	)
Acquisitions ⁽²⁾		(4,019	)		—			(4,019	)		—			—
Dispositions		—			—			—			—			—
Lease termination income (including our share of unconsolidated joint ventures)		(3,097	)		(2,346	)		(751	)		—			—
Other, net		448			473			(25	)		—			—

PGRE’s share of Same Store NOI for the nine months ended September 30, 2019	$	307,131		$	226,216		$	70,432		$	13,149		$	(2,666	)


	Nine Months Ended September 30, 2018
	Total			New York			San Francisco			Washington, D.C.			Other
PGRE’s share of NOI for the nine months ended September 30, 2018	$	311,684		$	220,524		$	69,450		$	27,206		$	(5,496	)
Acquisitions		—			—			—			—			—
Dispositions ⁽³⁾		(13,033	)		—			—			(13,033	)		—
Lease termination income (including our share of unconsolidated joint ventures)		(750	)		(272	)		(478	)		—			—
Other, net		230			226			4			—			—

PGRE’s share of Same Store NOI for the nine months ended September 30, 2018	$	298,131		$	220,478		$	68,976		$	14,173		$	(5,496	)


Increase (decrease) in PGRE’s share of Same Store NOI	$	9,000		$	5,738		$	1,456		$	(1,024	)	$	2,830
% Increase (decrease)		3.0	%		2.6	%		2.1	%		(7.2	%)

⁽¹⁾	See page 43 for our definition of this measure.

⁽²⁾	Represents our share of NOI attributable to acquired properties (111 Sutter Street and 55 Second Street in San Francisco) for the months in which they were not owned by us in both reporting periods.

⁽³⁾	Represents our share of NOI attributable to sold properties (2099 Pennsylvania Avenue and 425 Eye Street in Washington, D.C.) for the months in which they were not owned by us in both reporting periods.

- 20 -


		CONSOLIDATED JOINT VENTURES AND FUND - BALANCE SHEETS

(unaudited and in thousands)


	As of September 30, 2019										As of December 31, 2018
									Consolidated										Consolidated
	Consolidated Joint Ventures								Fund		Consolidated Joint Ventures								Fund
	Total		One		300		PGRESS		Residential		Total		One		300		PGRESS		Residential
	Consolidated		Market		Mission		Equity		Development		Consolidated		Market		Mission		Equity		Development
	Joint Ventures		Plaza		Street ⁽¹⁾		Holdings L.P.		Fund		Joint Ventures		Plaza		Street ⁽¹⁾		Holdings L.P.		Fund
PGRE Ownership				49.0%		31.1%		24.4%		7.4%				49.0%		31.1%		24.4%		7.4%
Assets:
Real estate, net	$	1,685,697	$	1,205,114	$	480,583	$	—	$	—	$	1,699,618	$	1,223,388	$	476,230	$	—	$	—
Cash and cash equivalents		65,904		51,091		13,898		915		2,280		54,268		33,976		19,933		359		3,648
Restricted cash		3,397		3,397		—		—		—		5,534		5,534		—		—		—
Investments in unconsolidated joint ventures		—		—		—		—		69,544		—		—		—		—		52,923
Preferred equity investments		—		—		—		—		—		36,042		—		—		36,042		—
Accounts and other receivables, net		4,517		3,832		685		—		125		1,982		903		1,079		—		125
Deferred rent receivable		55,888		46,509		9,379		—		—		51,926		46,646		5,280		—		—
Deferred charges, net		23,461		12,714		10,747		—		—		14,160		9,433		4,727		—		—
Intangible assets, net		33,511		23,636		9,875		—		—		45,818		29,398		16,420		—		—
Other assets		6,029		5,583		446		—		15,689		949		752		197		—		15,686

Total Assets	$	1,878,404	$	1,351,876	$	525,613	$	915	$	87,638	$	1,910,297	$	1,350,030	$	523,866	$	36,401	$	72,382


Liabilities:
Notes and mortgages payable, net	$	1,198,421	$	970,421	$	228,000	$	—	$	—	$	1,197,644	$	969,644	$	228,000	$	—	$	—
Accounts payable and accrued expenses		41,611		30,608		10,948		55		173		24,163		17,716		6,395		52		20
Intangible liabilities, net		22,474		20,158		2,316		—		—		31,582		26,156		5,426		—		—
Other liabilities		4,252		4,249		3		—		8,771		5		2		3		—		—

Total Liabilities		1,266,758		1,025,436		241,267		55		8,944		1,253,394		1,013,518		239,824		52		20


Equity:
Paramount Group, Inc. equity		248,435		160,022		87,689		724		6,453		261,908		164,958		87,577		9,373		5,475
Noncontrolling interests		363,211		166,418		196,657		136		72,241		394,995		171,554		196,465		26,976		66,887

Total Equity		611,646		326,440		284,346		860		78,694		656,903		336,512		284,042		36,349		72,362


Total Liabilities and Equity	$	1,878,404	$	1,351,876	$	525,613	$	915	$	87,638	$	1,910,297	$	1,350,030	$	523,866	$	36,401	$	72,382

⁽¹⁾	Formerly known as 50 Beale Street.

- 21 -


		CONSOLIDATED JOINT VENTURES AND FUND - OPERATING RESULTS

(unaudited and in thousands)


	Three Months Ended September 30, 2019															Three Months Ended September 30, 2018
													Consolidated														Consolidated
	Consolidated Joint Ventures												Fund			Consolidated Joint Ventures											Fund
	Total			One			300						Residential			Total			One			300					Residential
	Consolidated			Market			Mission			PGRESS Equity			Development			Consolidated			Market			Mission			PGRESS Equity		Development
	Joint Ventures			Plaza			Street			Holdings L.P.			Fund			Joint Ventures			Plaza			Street			Holdings L.P.		Fund
Total revenues	$	49,115		$	36,367		$	12,748		$	—		$	—		$	45,302		$	33,401		$	11,901		$	—	$	—
Total operating expenses		14,067			9,927			4,140			—			—			11,504			8,285			3,219			—		9

Net operating income		35,048			26,440			8,608			—			—			33,798			25,116			8,682			—		(9	)
Depreciation and amortization		(15,947	)		(10,604	)		(5,343	)		—			—			(16,951	)		(10,921	)		(6,030	)		—		—
Interest and other income (loss), net		151			191			45			(85	)		66			1,133			134			69			930		55
Interest and debt expense		(12,383	)		(10,303	)		(2,080	)		—			—			(12,383	)		(10,302	)		(2,081	)		—		—
Income from unconsolidated joint ventures		—			—			—			—			1			—			—			—			—		—

Net income (loss) before income taxes		6,869			5,724			1,230			(85	)		67			5,597			4,027			640			930		46
Income tax expense		—			—			—			—			—			(2	)		—			(2	)		—		(2	)

Net income (loss)	$	6,869		$	5,724		$	1,230		$	(85	)	$	67		$	5,595		$	4,027		$	638		$	930	$	44


PGRE’s share Ownership		Total			49.0%			31.1%			24.4%			7.4%			Total			49.0%			31.1%			24.4%		7.4%

Net income (loss)	$	3,140		$	2,803		$	358		$	(21	)	$	(42	)	$	2,378		$	1,976		$	175		$	227	$	(42	)
Add: Management fee income		678			196			482			—			—			504			167			337			—		—

PGRE’s share of net income (loss)		3,818			2,999			840			(21	)		(42	)		2,882			2,143			512			227		(42	)
Add: Real estate depreciation and amortization		6,856			5,196			1,660			—			—			7,232			5,351			1,881			—		—

FFO/Core FFO ⁽¹⁾	$	10,674		$	8,195		$	2,500		$	(21	)	$	(42	)	$	10,114		$	7,494		$	2,393		$	227	$	(42	)


Noncontrolling interests’ share Ownership		Total			51.0%			68.9%			75.6%			92.6%			Total			51.0%			68.9%			75.6%		92.6%

Net income (loss)	$	3,729		$	2,921		$	872		$	(64	)	$	109		$	3,217		$	2,051		$	463		$	703	$	86
Less: Management fee expense		(678	)		(196	)		(482	)		—			—			(504	)		(167	)		(337	)		—		—

Net income (loss) attributable to noncontrolling interests		3,051			2,725			390			(64	)		109			2,713			1,884			126			703		86
Add: Real estate depreciation and amortization		9,091			5,408			3,683			—			—			9,719			5,570			4,149			—		—

FFO/Core FFO ⁽¹⁾	$	12,142		$	8,133		$	4,073		$	(64	)	$	109		$	12,432		$	7,454		$	4,275		$	703	$	86

⁽¹⁾	See page 43 for our definition of these measures.

- 22 -


		CONSOLIDATED JOINT VENTURES AND FUND - OPERATING RESULTS

(unaudited and in thousands)


	Nine Months Ended September 30, 2019														Nine Months Ended September 30, 2018
												Consolidated														Consolidated
	Consolidated Joint Ventures											Fund			Consolidated Joint Ventures											Fund
	Total			One			300					Residential			Total			One			300					Residential
	Consolidated			Market			Mission			PGRESS Equity		Development			Consolidated			Market			Mission			PGRESS Equity		Development
	Joint Ventures			Plaza			Street			Holdings L.P.		Fund			Joint Ventures			Plaza			Street			Holdings L.P.		Fund
Total revenues	$	140,985		$	104,400		$	36,585		$	—	$	—		$	128,758		$	98,121		$	30,637		$	—	$	9
Total operating expenses		39,694			28,444			11,250			—		18			33,401			23,904			9,497			—		10

Net operating income (loss) ⁽¹⁾		101,291			75,956			25,335			—		(18	)		95,357			74,217			21,140			—		(1	)
Depreciation and amortization		(47,266	)		(31,594	)		(15,672	)		—		—			(49,215	)		(33,207	)		(16,008	)		—		—
Interest and other income, net		907			459			136			312		154			3,294			350			198			2,746		685
Interest and debt expense		(36,822	)		(30,581	)		(6,241	)		—		—			(36,823	)		(30,581	)		(6,242	)		—		—
Loss from unconsolidated joint ventures		—			—			—			—		(6	)		—			—			—			—		(18	)

Net income (loss) before income taxes		18,110			14,240			3,558			312		130			12,613			10,779			(912	)		2,746		666
Income tax expense		(19	)		(3	)		(16	)		—		(5	)		(10	)		(2	)		(8	)		—		(1	)

Net income (loss)	$	18,091		$	14,237		$	3,542		$	312	$	125		$	12,603		$	10,777		$	(920	)	$	2,746	$	665


PGRE’s share Ownership	Total			49.0%			31.1%			24.4%		7.4%			Total			49.0%			31.1%			24.4%		7.4%
Net income (loss)	$	8,087		$	6,972		$	1,039		$	76	$	(131	)	$	5,602		$	5,277		$	(344	)	$	669	$	(7	)
Add: Management fee income		1,751			537			1,214			—		—			1,481			491			990			—		4

PGRE’s share of net income (loss)		9,838			7,509			2,253			76		(131	)		7,083			5,768			646			669		(3	)
Add: Real estate depreciation and amortization		20,352			15,481			4,871			—		—			21,256			16,271			4,985			—		—

FFO/Core FFO ⁽¹⁾	$	30,190		$	22,990		$	7,124		$	76	$	(131	)	$	28,339		$	22,039		$	5,631		$	669	$	(3	)


Noncontrolling Interests’ share Ownership	Total			51.0%			68.9%			75.6%		92.6%			Total			51.0%			68.9%			75.6%		92.6%
Net income (loss)	$	10,004		$	7,265		$	2,503		$	236	$	256		$	7,001		$	5,500		$	(576	)	$	2,077	$	672
Less: Management fee expense		(1,751	)		(537	)		(1,214	)		—		—			(1,481	)		(491	)		(990	)		—		(4	)

Net income (loss) attributable to noncontrolling interests		8,253			6,728			1,289			236		256			5,520			5,009			(1,566	)		2,077		668
Add: Real estate depreciation and amortization		26,914			16,113			10,801			—		—			27,959			16,936			11,023			—		—

FFO/Core FFO ⁽¹⁾	$	35,167		$	22,841		$	12,090		$	236	$	256		$	33,479		$	21,945		$	9,457		$	2,077	$	668

⁽¹⁾	See page 43 for our definition of these measures.

- 23 -


		UNCONSOLIDATED JOINT VENTURES - BALANCE SHEETS

(unaudited and in thousands)


	As of September 30, 2019													As of December 31, 2018
			712 Fifth			111 Sutter			55 Second							712 Fifth
	Total		Avenue			Street ⁽¹⁾			Street ⁽²⁾			Other ⁽³⁾		Total		Avenue			Other ⁽³⁾

PGRE Ownership				50.0	%		49.0	%		44.1	%		Various				50.0	%		Various
Assets:
Real estate, net	$	1,651,040	$	207,208		$	215,014		$	385,703		$	843,115	$	1,060,921	$	202,289		$	858,632
Cash and cash equivalents		59,879		28,583			4,080			8,476			18,740		47,621		28,911			18,710
Restricted cash		4,992		1,829			3,163			—			—		2,526		2,526			—
Accounts and other receivables, net		2,082		1,383			566			133			—		6,329		6,329			—
Deferred rent receivable		16,613		14,845			472			55			1,241		15,206		13,618			1,588
Deferred charges, net		8,347		6,928			858			561			—		6,575		6,575			—
Intangible assets, net		121,687		—			12,781			32,821			76,085		97,658		—			97,658
Other assets		4,774		4,092			145			—			537		8,392		7,770			622

Total Assets	$	1,869,414	$	264,868		$	237,079		$	427,749		$	939,718	$	1,245,228	$	268,018		$	977,210


Liabilities:
Notes and mortgages payable, net	$	1,212,392	$	296,851		$	138,563		$	186,393		$	590,585	$	887,882	$	296,543		$	591,339
Accounts payable and accrued expenses		23,058		5,009			6,435			4,056			7,558		13,893		6,251			7,642
Intangible liabilities, net		25,610		—			4,869			20,741			—		—		—			—
Other liabilities		1,795		301			221			240			1,033		1,550		445			1,105

Total Liabilities		1,262,855		302,161			150,088			211,430			599,176		903,325		303,239			600,086


Total Equity		606,559		(37,293	)		86,991			216,319			340,542		341,903		(35,221	)		377,124


Total Liabilities and Equity	$	1,869,414	$	264,868		$	237,079		$	427,749		$	939,718	$	1,245,228	$	268,018		$	977,210

⁽¹⁾	Acquired on February 7, 2019.

⁽²⁾	Acquired on August 21, 2019.

⁽³⁾	Represents 60 Wall and Oder-Center, Germany.

- 24 -


		UNCONSOLIDATED JOINT VENTURES ‐ OPERATING RESULTS

(unaudited and in thousands)


	Three Months Ended September 30, 2019															Three Months Ended September 30, 2018
				712 Fifth			111 Sutter			55 Second									712 Fifth
	Total			Avenue			Street ⁽¹⁾			Street ⁽²⁾			Other ⁽³⁾			Total			Avenue			Other ⁽³⁾
Total revenues	$	41,188		$	11,044		$	4,238		$	3,559		$	22,347		$	35,376		$	13,581		$	21,795
Total operating expenses		17,673			6,878			1,892			1,386			7,517			13,274			6,250			7,024

Net operating income ⁽⁴⁾		23,515			4,166			2,346			2,173			14,830			22,102			7,331			14,771
Depreciation and amortization		(17,252	)		(2,781	)		(3,225	)		(2,116	)		(9,130	)		(12,001	)		(2,864	)		(9,137	)
Interest and other income (loss), net		179			111			(1	)		15			54			192			146			46
Interest and debt expense		(12,902	)		(2,701	)		(1,703	)		(832	)		(7,666	)		(10,080	)		(2,701	)		(7,379	)

Net (loss) income before income taxes		(6,460	)		(1,205	)		(2,583	)		(760	)		(1,912	)		213			1,912			(1,699	)
Income tax benefit		2			—			2			—			—			—			—			—

Net (loss) income	$	(6,458	)	$	(1,205	)	$	(2,581	)	$	(760	)	$	(1,912	)	$	213		$	1,912		$	(1,699	)


PGRE’s share Ownership	Total			50.0%			49.0%			44.1%			Various			Total			50.0%			Various
Net (loss) income	$	(2,272	)	$	(603	)	$	(1,266	)	$	(336	)	$	(67	)	$	898		$	956		$	(58	)
Less: Step-up basis adjustment		(37	)		—			—			—			(37	)		(28	)		—			(28	)
Add: Distributions in excess of earnings and (earnings in excess of distributions)		976			976			—			—			—			(398	)		(398	)		—

PGRE’s share of net (loss) income		(1,333	)		373			(1,266	)		(336	)		(104	)		472			558			(86	)
Add: Real estate depreciation and amortization		4,403			1,390			1,581			933			499			1,923			1,432			491

FFO ⁽⁴⁾		3,070			1,763			315			597			395			2,395			1,990			405
Less: (Distributions in excess of earnings) and earnings in excess of distributions		(976	)		(976	)		—			—			—			398			398			—

Core FFO⁽⁴⁾	$	2,094		$	787		$	315		$	597		$	395		$	2,793		$	2,388		$	405


Joint Venture Partners’ share Ownership	Total			50.0%			51.0%			55.9%			Various			Total			50.0%			Various
Net (loss) income	$	(4,186	)	$	(602	)	$	(1,315	)	$	(424	)	$	(1,845	)	$	(685	)	$	956		$	(1,641	)
Add: Real estate depreciation and amortization		12,886			1,391			1,644			1,183			8,668			10,106			1,432			8,674

FFO/Core FFO ⁽⁴⁾	$	8,700		$	789		$	329		$	759		$	6,823		$	9,421		$	2,388		$	7,033

⁽¹⁾	Acquired on February 7, 2019.

⁽²⁾	Acquired on August 21, 2019.

⁽³⁾	Represents 60 Wall and Oder-Center, Germany.

⁽⁴⁾	See page 43 for our definition of these measures.

- 25 -


		UNCONSOLIDATED JOINT VENTURES ‐ OPERATING RESULTS

(unaudited and in thousands)


	Nine Months Ended September 30, 2019															Nine Months Ended September 30, 2018
				712 Fifth			111 Sutter			55 Second									712 Fifth
	Total			Avenue			Street ⁽¹⁾			Street ⁽²⁾			Other ⁽³⁾			Total			Avenue			Other ⁽³⁾
Total revenues	$	116,358		$	36,124		$	10,854		$	3,559		$	65,821		$	106,400		$	41,446		$	64,954
Total operating expenses		47,327			19,659			4,605			1,386			21,677			39,492			18,560			20,932

Net operating income ⁽⁴⁾		69,031			16,465			6,249			2,173			44,144			66,908			22,886			44,022
Depreciation and amortization		(46,459	)		(8,318	)		(8,632	)		(2,116	)		(27,393	)		(36,194	)		(8,788	)		(27,406	)
Interest and other income, net		478			379			8			15			76			560			416			144
Interest and debt expense		(36,752	)		(8,020	)		(4,537	)		(832	)		(23,363	)		(28,992	)		(8,020	)		(20,972	)

Net (loss) income before income taxes		(13,702	)		506			(6,912	)		(760	)		(6,536	)		2,282			6,494			(4,212	)
Income tax (expense) benefit		(6	)		—			2			—			(8	)		(10	)		—			(10	)

Net (loss) income	$	(13,708	)	$	506		$	(6,910	)	$	(760	)	$	(6,544	)	$	2,272		$	6,494		$	(4,222	)


PGRE’s share: Ownership	Total			50.0%			49.0%			44.1%			Various			Total			50.0%			Various
Net (loss) income	$	(3,731	)	$	253		$	(3,387	)	$	(336	)	$	(261	)	$	3,113		$	3,247		$	(134	)
Less: Step-up basis adjustment		(115	)		—			—			—			(115	)		(83	)		—			(83	)
Add: Distributions in excess of earnings and (earnings in excess of distributions)		1,037			1,037			—			—			—			(81	)		(81	)		—

PGRE’s share of net (loss) income		(2,809	)		1,290			(3,387	)		(336	)		(376	)		2,949			3,166			(217	)
Add: Real estate depreciation and amortization		10,823			4,159			4,230			933			1,501			5,863			4,394			1,469

FFO ⁽⁴⁾		8,014			5,449			843			597			1,125			8,812			7,560			1,252
Less: (Distributions in excess of earnings) and earnings in excess of distributions		(1,037	)		(1,037	)		—			—			—			81			81			—

Core FFO⁽⁴⁾	$	6,977		$	4,412		$	843		$	597		$	1,125		$	8,893		$	7,641		$	1,252


Joint Venture Partners’ share: Ownership	Total			50.0%			51.0%			55.9%			Various			Total			50.0%			Various
Net (loss) income	$	(9,977	)	$	253		$	(3,523	)	$	(424	)	$	(6,283	)	$	(841	)	$	3,247		$	(4,088	)
Add: Real estate depreciation and amortization		35,751			4,159			4,402			1,183			26,007			30,414			4,394			26,020

FFO/Core FFO ⁽⁴⁾	$	25,774		$	4,412		$	879		$	759		$	19,724		$	29,573		$	7,641		$	21,932

⁽¹⁾	Acquired on February 7, 2019.

⁽²⁾	Acquired on August 21, 2019.

⁽³⁾	Represents 60 Wall and Oder-Center, Germany.

⁽⁴⁾	See page 43 for our definition of these measures.

- 26 -


		UNCONSOLIDATED FUNDS SUMMARY

(unaudited and in thousands)

Debt Fund Platform:

Paramount Group Real Estate Fund VIII, LP (“Fund VIII”) and Paramount Group Real Estate Fund X, LP (“Fund X”)

The following is a summary of our debt funds, as of September 30, 2019.


	Debt Fund Platform									Interest
	Fund VIII ⁽¹⁾			Fund X ⁽¹⁾			Total			Rate ⁽²⁾			Maturity ⁽³⁾
Committed capital	$	775,200		$	172,000		$	947,200
Invested and/or reserved for future funding		(654,739	)		(40,000	)		(694,739	)		7.20	%		Jun 2020 - Dec 2027

Available for future investments	$	120,461		$	132,000		$	252,461

⁽¹⁾	As of September 30, 2019, PGRE’s ownership interest in Fund VIII and Fund X is 1.3% and 8.7%, respectively.

⁽²⁾	Represents the weighted average interest rate comprised of fixed and variable rate debt.

⁽³⁾	Represents the range of maturity dates for all underlying investments.

- 27 -


		CAPITAL STRUCTURE

(unaudited and in thousands, except share, unit and per share amounts)


					As of September 30, 2019
Debt:
Consolidated debt:
Notes and mortgages payable ⁽¹⁾					$	3,603,000
$1.0 billion Revolving Credit Facility						—

						3,603,000
Less:
Noncontrolling interests’ share of consolidated debt ⁽²⁾						(654,342	)
Add:
PGRE’s share of unconsolidated joint venture debt ⁽³⁾						332,303

PGRE’s share of total debt ⁽⁴⁾						3,280,961

	Shares / Units		Share Price as of
	Outstanding		September 30, 2019
Equity:
Common stock		227,865,810	$	13.35		3,042,009
Operating Partnership units		24,762,564		13.35		330,581

Total equity		252,628,374		13.35		3,372,590


Total Market Capitalization					$	6,653,551

⁽¹⁾	Represents contractual amount due pursuant to the respective debt agreements.

⁽²⁾	Represents noncontrolling interests’ share of One Market Plaza and 300 Mission Street.

⁽³⁾	Represents our share of 712 Fifth Avenue, 111 Sutter Street, 55 Second Street, 60 Wall Street and Oder-Center, Germany.

⁽⁴⁾	See page 43 for our definition of this measure.

- 28 -


		DEBT ANALYSIS

(unaudited and in thousands)


	Total Debt						Fixed Rate Debt						Variable Rate Debt
	Amount			Rate			Amount			Rate			Amount			Rate
Consolidated Debt:
1633 Broadway	$	1,050,000			3.55	%	$	1,000,000			3.54	%	$	50,000			3.85	%
1301 Avenue of the Americas		850,000			3.41	%		500,000			3.05	%		350,000			3.93	%
31 West 52nd Street		500,000			3.80	%		500,000			3.80	%		—			—
One Market Plaza		975,000			4.03	%		975,000			4.03	%		—			—
300 Mission Street		228,000			3.65	%		228,000			3.65	%		—			—
Revolving Credit Facility		—			—			—			—			—			—

Total consolidated debt		3,603,000			3.69	%		3,203,000			3.66	%		400,000			3.92	%
Noncontrolling interests’ share		(654,342	)		3.94	%		(654,342	)		3.94	%		—			—

PGRE’s share of consolidated debt ⁽¹⁾	$	2,948,658			3.63	%	$	2,548,658			3.59	%	$	400,000			3.92	%


Unconsolidated Joint Venture Debt:
712 Fifth Avenue	$	300,000			3.39	%	$	300,000			3.39	%	$	—			—
111 Sutter Street ⁽²⁾		140,714			4.26	%		—			—			140,714			4.26	%
55 Second Street ⁽³⁾		187,500			3.88	%		187,500			3.88	%		—			—
60 Wall Street		575,000			4.48	%		—			—			575,000			4.48	%
Oder-Center, Germany		19,748			4.62	%		19,748			4.62	%		—			—

Total unconsolidated debt		1,222,962			4.10	%		507,248			3.62	%		715,714			4.44	%
Joint venture partners’ share		(890,659	)		4.21	%		(272,703	)		3.66	%		(617,956	)		4.45	%

PGRE’s share of unconsolidated debt ⁽¹⁾	$	332,303			3.79	%	$	234,545			3.57	%	$	97,758			4.32	%


PGRE’s share of Total Debt ⁽¹⁾	$	3,280,961			3.65	%	$	2,783,203			3.59	%	$	497,758			4.00	%


	Required		Actual
Revolving Credit Facility Covenants: ⁽⁴⁾
Total Debt / Total Assets		Less than 60%		39.8	%
Secured Debt / Total Assets		Less than 50%		39.8	%
Fixed Charge Coverage		Greater than 1.5x		3.7	x
Unsecured Debt / Unencumbered Assets		Less than 60%		0.0	%
Unencumbered Interest Coverage		Greater than 1.75x		37.6	x


	Amount		%
Debt Composition (at PGRE’s share):
Fixed rate debt:
Consolidated fixed rate debt		$2,548,658
Unconsolidated fixed rate debt		234,545

PGRE’s share of fixed rate debt		2,783,203		84.8%

Variable rate debt:
Consolidated variable rate debt		400,000
Unconsolidated variable rate debt		97,758

PGRE’s share of variable rate debt		497,758		15.2%

PGRE’s share of Total Debt ⁽²⁾		$3,280,961		100.0%

⁽¹⁾	See page 43 for our definition of this measure.

⁽²⁾	In connection with the acquisition of 111 Sutter Street on February 7, 2019, the joint venture completed a financing of the property. The four-year loan is interest only at LIBOR plus 215 basis points and has three one-year extension options.

⁽³⁾	In connection with the acquisition of 55 Second Street on August 21, 2019, the joint venture assumed the existing $137,500 mortgage loan and upsized it by an additional $50,000. The $187,500 mortgage loan is interest-only at a fixed rate of 3.88% and matures in October 2026.

⁽⁴⁾

This section presents ratios as of September 30, 2019 in accordance with the terms of our revolving credit facility, which has been filed with the SEC. We are not presenting these ratios and the related calculations for any other purpose or for any other period, and are not intending for these measures to otherwise provide information to investors about our financial condition or results of operations. Investors should not rely on these measures other than for purposes of testing our compliance with the revolving credit facility.

- 29 -


		DEBT MATURITIES

(unaudited and in thousands)


	2019			2020			2021			2022			2023			Thereafter			Total
Consolidated Debt:
1301 Avenue of the Americas	$	—		$	—		$	850,000		$	—		$	—		$	—		$	850,000
300 Mission Street		—			—			228,000			—			—			—			228,000
1633 Broadway		—			—			—			1,050,000			—			—			1,050,000
One Market Plaza		—			—			—			—			—			975,000			975,000
31 West 52nd Street		—			—			—			—			—			500,000			500,000
Revolving Credit Facility		—			—			—			—			—			—			—

Total consolidated debt		—			—			1,078,000			1,050,000			—			1,475,000			3,603,000
Noncontrolling interests’ share		—			—			(157,092	)		—			—			(497,250	)		(654,342	)

PGRE’s share of consolidated debt ⁽¹⁾	$	—		$	—		$	920,908		$	1,050,000		$	—		$	977,750		$	2,948,658


Unconsolidated Joint Venture Debt:
712 Fifth Avenue	$	—		$	—		$	—		$	—		$	—		$	300,000		$	300,000
111 Sutter Street		—			—			—			—			140,714			—			140,714
55 Second Street		—			—			—			—			—			187,500			187,500
60 Wall Street		—			—			—			575,000			—			—			575,000
Oder-Center, Germany		—			—			—			19,748			—			—			19,748

Total unconsolidated debt		—			—			—			594,748			140,714			487,500			1,222,962
Joint venture partners’ share		—			—			—			(564,064	)		(71,764	)		(254,831	)		(890,659	)

PGRE’s share of unconsolidated debt ⁽¹⁾	$	—		$	—		$	—		$	30,684		$	68,950		$	232,669		$	332,303


PGRE’s share of total debt ⁽¹⁾	$	—		$	—		$	920,908		$	1,080,684		$	68,950		$	1,210,419		$	3,280,961


Weighted average rate		—	%		—	%		3.43	%		3.58	%		4.26	%		3.85	%		3.65	%

% of debt maturing		—	%		—	%		28.1	%		32.9	%		2.1	%		36.9	%		100.0	%

⁽¹⁾	See page 43 for our definition of this measure.

- 30 -


		PORTFOLIO SUMMARY

(unaudited and in thousands, except square feet and per square foot amounts)


															Annualized Rent ⁽¹⁾
Property	Submarket	Paramount Ownership			Number of Buildings		Square Feet		% Leased ⁽¹⁾			% Occupied ⁽¹⁾			Amount		Per Square Foot ⁽²⁾
As of September 30, 2019
New York:
1633 Broadway	West Side		100.0	%		1		2,496,649		98.4	%		98.4	%	$	183,559	$	76.40
1301 Avenue of the Americas	Sixth Avenue / Rock Center		100.0	%		1		1,776,972		99.4	%		98.1	%		136,198		78.61
1325 Avenue of the Americas	Sixth Avenue / Rock Center		100.0	%		1		809,297		91.1	%		88.1	%		46,540		67.12
31 West 52nd Street	Sixth Avenue / Rock Center		100.0	%		1		763,140		97.5	%		97.5	%		71,003		92.92
900 Third Avenue	East Side		100.0	%		1		591,339		92.7	%		92.7	%		39,955		73.15
712 Fifth Avenue	Madison / Fifth Avenue		50.0	%		1		543,411		70.8	%		70.8	%		43,863		114.34
60 Wall Street	Downtown		5.0	%		1		1,625,483		100.0	%		100.0	%		73,600		45.28	⁽³⁾

Subtotal / Weighted average						7		8,606,291		96.0	%		95.5	%		594,718		72.92

PGRE’s share						7		6,790,539		96.1	%		95.4	%		502,874		78.54


San Francisco:
One Market Plaza	South Financial District		49.0	%		2		1,580,573		99.6	%		98.2	%		131,289		83.35
One Front Street	North Financial District		100.0	%		1		643,307		100.0	%		99.9	%		49,625		76.51
300 Mission Street	South Financial District		31.1	%		1		665,483		99.7	%		99.7	%		43,501		65.84
55 Second Street ⁽⁴⁾	South Financial District		44.1	%		1		383,659		94.8	%		86.9	%		24,525		73.62
111 Sutter Street ⁽⁵⁾	North Financial District		49.0	%		1		280,475		84.6	%		70.6	%		14,088		71.84

Subtotal / Weighted average						6		3,553,497		98.0	%		95.4	%		263,028		77.03

PGRE’s share						6		1,931,379		98.2	%		96.0	%		145,204		77.67


Washington, D.C.:
1899 Pennsylvania Avenue	CBD		100.0	%		1		190,955		90.4	%		90.4	%		15,024		86.66
Subtotal / Weighted average						1		190,955		90.4	%		90.4	%		15,024		86.66

PGRE’s share						1		190,955		90.4	%		90.4	%		15,024		86.66


Total / Weighted average						14		12,350,743		96.5	%		95.4	%	$	872,770	$	74.33

PGRE’s share						14		8,912,873		96.5	%		95.4	%	$	663,102	$	78.52

(1)	See page 43 for our definition of this measure.

(2)	Represents office and retail space only.

(3)	Represents “triple-net” rent.

(4)	Acquired on August 21, 2019.

(5)	Acquired on February 7, 2019.

- 31 -


		SAME STORE LEASED OCCUPANCY

(unaudited)


				As of September 30, 2019						As of June 30, 2019						Change in Same Store Leased %
Property	Paramount Ownership			Leased % ⁽¹⁾			Same Store Leased % ⁽¹⁾			Leased % ⁽¹⁾			Same Store Leased % ⁽¹⁾			Change in Same Store Leased %

New York:
1633 Broadway		100.0	%		98.4	%		98.4	%		98.4	%		98.4	%		—	%
1301 Avenue of the Americas		100.0	%		99.4	%		99.4	%		97.9	%		97.9	%		1.5	%
1325 Avenue of the Americas		100.0	%		91.1	%		91.1	%		97.5	%		97.5	%		(6.4	%)
31 West 52nd Street		100.0	%		97.5	%		97.5	%		97.5	%		97.5	%		—	%
900 Third Avenue		100.0	%		92.7	%		92.7	%		93.5	%		93.5	%		(0.8	%)
712 Fifth Avenue		50.0	%		70.8	%		70.8	%		72.0	%		72.0	%		(1.2	%)
60 Wall Street		5.0	%		100.0	%		100.0	%		100.0	%		100.0	%		—	%

Weighted average					96.0	%		96.0	%		96.4	%		96.4	%		(0.4	%)

PGRE’s share					96.1	%		96.1	%		96.6	%		96.6	%		(0.5	%)


San Francisco:
One Market Plaza		49.0	%		99.6	%		99.6	%		99.3	%		99.3	%		0.3	%
One Front Street		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		—	%
300 Mission Street		31.1	%		99.7	%		99.7	%		99.7	%		99.7	%		—	%
55 Second Street ⁽²⁾		44.1	%		94.8	%		—	%		—	%		—	%		—	%
111 Sutter Street ⁽³⁾		49.0	%		84.6	%		84.6	%		70.3	%		70.3	%		14.3	%

Weighted average					98.0	%		98.4	%		96.9	%		96.9	%		1.5	%

PGRE’s share					98.2	%		98.6	%		97.3	%		97.3	%		1.3	%


Washington, D.C.:
1899 Pennsylvania Avenue		100.0	%		90.4	%		90.4	%		90.4	%		90.4	%		—	%
Liberty Place ⁽⁴⁾		100.0	%		—	%		—	%		98.2	%		—	%		—	%

Weighted average					90.4	%		90.4	%		94.1	%		90.4	%		—	%

PGRE’s share					90.4	%		90.4	%		94.1	%		90.4	%		—	%


Weighted average					96.5	%		96.6	%		96.5	%		96.5	%		0.1	%

PGRE’s share					96.5	%		96.5	%		96.7	%		96.6	%		(0.1	%)

⁽¹⁾	See page 43 for our definition of this measure.

⁽²⁾	Acquired on August 21, 2019.

⁽³⁾	Acquired on February 7, 2019.

⁽⁴⁾	Sold on September 26, 2019.

- 32 -


		SAME STORE LEASED OCCUPANCY

(unaudited)


				As of September 30, 2019						As of December 31, 2018						Change in Same Store Leased %
Property	Paramount Ownership			Leased % ⁽¹⁾			Same Store Leased % ⁽¹⁾			Leased % ⁽¹⁾			Same Store Leased % ⁽¹⁾			Change in Same Store Leased %

New York:
1633 Broadway		100.0	%		98.4	%		98.4	%		95.4	%		95.4	%		3.0	%
1301 Avenue of the Americas		100.0	%		99.4	%		99.4	%		97.9	%		97.9	%		1.5	%
1325 Avenue of the Americas		100.0	%		91.1	%		91.1	%		96.7	%		96.7	%		(5.6	%)
31 West 52nd Street		100.0	%		97.5	%		97.5	%		97.5	%		97.5	%		—	%
900 Third Avenue		100.0	%		92.7	%		92.7	%		92.6	%		92.6	%		0.1	%
712 Fifth Avenue		50.0	%		70.8	%		70.8	%		88.4	%		88.4	%		(17.6	%)
60 Wall Street		5.0	%		100.0	%		100.0	%		100.0	%		100.0	%		—	%

Weighted average					96.0	%		96.0	%		96.5	%		96.5	%		(0.5	%)

PGRE’s share					96.1	%		96.1	%		96.0	%		96.0	%		0.1	%


San Francisco:
One Market Plaza		49.0	%		99.6	%		99.6	%		99.0	%		99.0	%		0.6	%
One Front Street		100.0	%		100.0	%		100.0	%		96.3	%		96.3	%		3.7	%
300 Mission Street		31.1	%		99.7	%		99.7	%		99.7	%		99.7	%		—	%
55 Second Street ⁽²⁾		44.1	%		94.8	%		—	%		—	%		—	%		—	%
111 Sutter Street ⁽³⁾		49.0	%		84.6	%		—	%		—	%		—	%		—	%

Weighted average					98.0	%		99.7	%		98.5	%		98.5	%		1.2	%

PGRE’s share					98.2	%		99.8	%		98.0	%		98.0	%		1.8	%


Washington, D.C.:
1899 Pennsylvania Avenue		100.0	%		90.4	%		90.4	%		100.0	%		100.0	%		(9.6	%)
Liberty Place ⁽⁴⁾		100.0	%		—	%		—	%		95.8	%		—	%		—	%

Weighted average					90.4	%		90.4	%		98.0	%		100.0	%		(9.6	%)

PGRE’s share					90.4	%		90.4	%		98.0	%		100.0	%		(9.6	%)


Weighted average					96.5	%		96.8	%		97.0	%		97.0	%		(0.2	%)

PGRE’s share					96.5	%		96.7	%		96.4	%		96.4	%		0.3	%

⁽¹⁾	See page 43 for our definition of this measure.

⁽²⁾	Acquired on August 21, 2019.

⁽³⁾	Acquired on February 7, 2019.

⁽⁴⁾	Sold on September 26, 2019.

- 33 -


		TOP TENANTS AND INDUSTRY DIVERSIFICATION

(unaudited and in thousands, except square feet and per square foot amounts)


									PGRE’s Share of
	Property		Lease Expiration			Total Square Feet Occupied			Total Square Feet Occupied			% of Total Square Feet			Annualized Rent ⁽¹⁾				% of Annualized Rent
																	Per Square Foot
															Amount		Per Square Foot
Top 10 Tenants:
As of September 30, 2019
Barclays Capital, Inc.		1301 Avenue of the Americas		Dec-2020			497,418			497,418			5.6	%	$	32,959	$	66.26		5.0	%
Allianz Global Investors, LP		1633 Broadway		Jan-2031			320,911			320,911			3.6	%		29,284		91.25		4.4	%
Clifford Chance LLP		31 West 52nd Street		Jun-2024			328,992			328,992			3.7	%		29,130		88.54		4.4	%
Credit Agricole Corporate & Investment Bank		1301 Avenue of the Americas		Feb-2023			312,679			312,679			3.5	%		27,019		86.41		4.1	%
Norton Rose Fulbright		1301 Avenue of the Americas		Sep-2034	⁽²⁾		320,325	⁽²⁾		320,325	⁽²⁾		3.6	%		25,695		80.22		3.9	%
First Republic Bank		One Front Street		Jun-2025	⁽³⁾		338,602	⁽³⁾		338,602	⁽³⁾		3.8	%		25,543		75.44		3.9	%
Morgan Stanley & Company		1633 Broadway		Mar-2032			260,829			260,829			2.9	%		19,925		76.39		3.0	%
WMG Acquisition Corp. (Warner Music Group)		1633 Broadway		Jul-2029			293,888			293,888			3.3	%		19,379		65.94		2.9	%
Showtime Networks, Inc.		1633 Broadway		Jan-2026			261,196			261,196			2.9	%		16,702		63.94		2.5	%
Kasowitz Benson Torres & Friedman, LLP		1633 Broadway		Mar-2037			203,394			203,394			2.3	%		14,986		73.68		2.3	%


	PGRE’s Share of
	Square Feet Occupied		% of Occupied Square Feet			Annualized Rent ⁽¹⁾		% of Annualized Rent
Industry Diversification:
As of September 30, 2019
Legal Services		1,889,419		22.3	%	$	153,178		23.1	%
Financial Services—Commercial and Investment Banking		1,821,813		21.5	%		135,970		20.5	%
Technology and Media		1,587,986		18.7	%		115,219		17.4	%
Financial Services, all others		1,213,723		14.3	%		106,539		16.1	%
Insurance		554,400		6.6	%		46,091		7.0	%
Retail		163,438		1.9	%		15,582		2.3	%
Consumer Products		197,950		2.3	%		15,546		2.3	%
Travel & Leisure		203,575		2.4	%		14,185		2.1	%
Real Estate		140,725		1.7	%		11,638		1.8	%
Other		705,391		8.3	%		49,154		7.4	%

⁽¹⁾	See page 43 for our definition of this measure.

⁽²⁾	116,462 of the square feet leased expires on March 31, 2032.

⁽³⁾	76,999 and 10,952 of the square feet leased expire on December 31, 2029 and December 31, 2030, respectively.

- 34 -


		LEASING ACTIVITY ⁽¹⁾

(unaudited)


	Total			New York			San Francisco			Washington, D.C.
Three Months Ended September 30, 2019

Total square feet leased		209,016			115,052			89,854			4,110

PGRE’s share of total square feet leased:		160,022			111,884			44,028			4,110

Initial rent ⁽²⁾	$	83.16		$	73.29		$	102.17		$	91.11
Weighted average lease term (in years)		7.1			6.1			9.4			3.3
Tenant improvements and leasing commissions:
Per square foot	$	71.58		$	56.98		$	104.06		$	36.81
Per square foot per annum	$	10.08		$	9.31		$	11.05		$	11.04
Percentage of initial rent		12.1	%		12.7	%		10.8	%		12.1	%
Rent concessions: Rent concessions:
Average free rent period (in months)		5.1			5.9			3.5			4.0
Average free rent period per annum (in months)		0.7			1.0			0.4			1.2

Second generation space: ⁽²⁾
Square feet		93,003			64,497			24,396			4,110
Cash basis:
Initial rent ⁽²⁾	$	81.48		$	68.29		$	114.70		$	91.11
Prior escalated rent ⁽²⁾	$	73.33		$	66.60		$	88.27		$	90.19
Percentage increase		11.1	%		2.5	%		29.9	%		1.0	%
GAAP basis:
Straight-line rent	$	81.73		$	63.31		$	129.53		$	87.07
Prior straight-line rent	$	71.82		$	65.11		$	87.69		$	82.98
Percentage increase (decrease)		13.8	%		(2.8	%)		47.7	%		4.9	%

⁽¹⁾	The leasing statistics, except for square feet leased, represent office space only.

⁽²⁾	See page 43 for our definition of this measure.

- 35 -


		LEASING ACTIVITY ⁽¹⁾

(unaudited)


	Total			New York			San Francisco			Washington, D.C.
Nine Months Ended September 30, 2019

Total square feet leased		1,258,775			416,760			824,570			17,445

PGRE’s share of total square feet leased:		905,210			390,105			497,660			17,445
Initial rent ⁽²⁾	$	90.65		$	83.81		$	95.63		$	88.97
Weighted average lease term (in years)		9.1			9.1			9.2			6.9
Tenant improvements and leasing commissions:
Per square foot	$	95.81		$	92.11		$	99.92		$	54.59
Per square foot per annum	$	10.50		$	10.15		$	10.81		$	7.91
Percentage of initial rent		11.6	%		12.1	%		11.3	%		8.9	%
Rent concessions: Rent concessions:
Average free rent period (in months)		5.8			8.9			3.4			7.1
Average free rent period per annum (in months)		0.6			1.0			0.4			1.0

Second generation space: ⁽²⁾
Square feet		761,257			271,547			474,907			14,803
Cash basis:
Initial rent ⁽²⁾	$	91.43		$	83.29		$	96.01		$	89.22
Prior escalated rent ⁽²⁾	$	77.74		$	83.45		$	74.31		$	86.24
Percentage increase (decrease)		17.6	%		(0.2	%)		29.2	%		3.5	%
GAAP basis:
Straight-line rent	$	95.47		$	78.90		$	104.88		$	88.19
Prior straight-line rent	$	80.60		$	80.99		$	80.34		$	82.07
Percentage increase (decrease)		18.4	%		(2.6	%)		30.5	%		7.5	%

⁽¹⁾	The leasing statistics, except for square feet leased, represent office space only.

⁽²⁾	See page 43 for our definition of this measure.

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		LEASE EXPIRATIONS - TOTAL PORTFOLIO

(unaudited and in thousands, except square feet and per square foot amounts)


	Total Square Feet of Expiring Leases		PGRE’s Share of
Year of Lease Expiration ⁽²⁾			Square Feet of Expiring Leases		Annualized Rent ⁽¹⁾				% of Annualized Rent
Year of Lease Expiration ⁽²⁾			Square Feet of Expiring Leases		Amount		Per Square Foot ⁽³⁾		% of Annualized Rent

Month to Month		35,703		27,577	$	1,635	$	55.41		0.2	%


4Q 2019		106,480		95,121		8,531		89.59		1.2	%


1Q 2020		70,379		45,679		3,770		73.15		0.6	%
2Q 2020		86,854		64,079		5,266		87.76		0.8	%
3Q 2020		114,521		76,408		5,916		77.54		0.9	%
4Q 2020		29,719		15,148		1,349		91.72		0.2	%

Total 2020		301,473		201,314		16,301		80.71		2.5	%
2021		1,311,074		1,099,276		76,012		70.77		11.0	%
2022		2,158,833		398,833		27,166		79.59		4.0	%
2023		773,761		705,849		57,435		84.57		8.3	%
2024		671,764		626,563		52,109		83.32		7.6	%
2025		1,345,939		848,619		66,874		78.90		9.7	%
2026		1,023,698		807,077		62,775		74.87		9.1	%
2027		256,279		169,122		13,922		82.30		2.0	%
2028		207,212		184,298		14,524		79.39		2.1	%
Thereafter		3,725,682		3,433,823		291,557		84.68		42.3	%

⁽¹⁾	See page 43 for our definition of this measure.

⁽²⁾	Leases that expire on the last day of the quarter are treated as occupied and are reflected as expiring space in the following quarter.

⁽³⁾	Represents office and retail space only.

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		LEASE EXPIRATIONS - NEW YORK

(unaudited and in thousands, except square feet and per square foot amounts)


	Total Square Feet of Expiring Leases		PGRE’s Share of
Year of Lease Expiration ⁽²⁾			Square Feet of Expiring Leases		Annualized Rent ⁽¹⁾				% of Annualized Rent
Year of Lease Expiration ⁽²⁾			Square Feet of Expiring Leases		Amount		Per Square Foot ⁽³⁾		% of Annualized Rent

Month to Month		15,620		15,620	$	961	$	95.38		0.2	%


4Q 2019		87,382		86,031		7,889		91.59		1.6	%


1Q 2020		40,951		32,572		2,464		75.65		0.5	%
2Q 2020		64,630		53,189		4,406		89.75		0.9	%
3Q 2020		53,006		36,792		2,893		78.86		0.6	%
4Q 2020		10,694		5,827		544		100.49		0.1	%

Total 2020		169,281		128,380		10,307		83.20		2.1	%
2021		889,067		879,795		60,651		70.94		12.0	%
2022		1,794,831		237,453		13,207		71.19		2.6	%
2023		554,599		525,646		40,992		82.28		8.1	%
2024		568,012		561,201		46,292		82.63		9.1	%
2025		270,038		231,454		20,383		88.07		4.0	%
2026		655,139		632,151		48,334		72.73		9.5	%
2027		85,378		85,378		7,314		85.67		1.4	%
2028		147,554		136,133		11,088		82.05		2.2	%
Thereafter		3,026,846		3,008,176		239,311		79.25		47.2	%

⁽¹⁾	See page 43 for our definition of this measure.

⁽²⁾	Leases that expire on the last day of the quarter are treated as occupied and are reflected as expiring space in the following quarter.

⁽³⁾	Represents office and retail space only.

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		LEASE EXPIRATIONS - SAN FRANCISCO

(unaudited and in thousands, except square feet and per square foot amounts)


	Total Square Feet of Expiring Leases		PGRE’s Share of
Year of Lease Expiration ⁽²⁾			Square Feet of Expiring Leases		Annualized Rent ⁽¹⁾				% of Annualized Rent
Year of Lease Expiration ⁽²⁾			Square Feet of Expiring Leases		Amount		Per Square Foot ⁽³⁾		% of Annualized Rent

Month to Month		18,485		10,359	$	674	$	45.49		0.4	%


4Q 2019		19,098		9,090		642		70.64		0.4	%


1Q 2020		29,428		13,107		1,306		66.06		0.8	%
2Q 2020		22,224		10,890		860		78.44		0.5	%
3Q 2020		61,515		39,616		3,023		76.32		1.8	%
4Q 2020		19,025		9,321		805		87.09		0.5	%

Total 2020		132,192		72,934		5,994		76.38		3.6	%
2021		417,690		215,164		14,998		69.84		9.0	%
2022		360,271		157,649		13,752		87.00		8.2	%
2023		84,384		45,425		4,199		92.44		2.5	%
2024		103,752		65,362		5,817		89.31		3.5	%
2025		1,075,901		617,165		46,491		75.46		27.8	%
2026		340,313		146,680		12,247		83.48		7.3	%
2027		170,901		83,744		6,608		78.84		4.0	%
2028		59,658		48,165		3,436		71.81		2.1	%
Thereafter		698,836		425,647		52,246		122.74		31.2	%

⁽¹⁾	See page 43 for our definition of this measure.

⁽²⁾	Leases that expire on the last day of the quarter are treated as occupied and are reflected as expiring space in the following quarter.

⁽³⁾	Represents office and retail space only.

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		LEASE EXPIRATIONS - WASHINGTON, D.C.

(unaudited and in thousands, except square feet and per square foot amounts)


	Total Square Feet of Expiring Leases		PGRE’s Share of
Year of Lease Expiration ⁽²⁾			Square Feet of Expiring Leases		Annualized Rent ⁽¹⁾				% of Annualized Rent
Year of Lease Expiration ⁽²⁾			Square Feet of Expiring Leases		Amount		Per Square Foot ⁽³⁾		% of Annualized Rent

Month to Month		1,598		1,598	$	—	$	—		—	%


4Q 2019		—		—		—		—		—	%


1Q 2020		—		—		—		—		—	%
2Q 2020		—		—		—		—		—	%
3Q 2020		—		—		—		—		—	%
4Q 2020		—		—		—		—		—	%

Total 2020		—		—		—		—		—	%
2021		4,317		4,317		363		84.20		2.4	%
2022		3,731		3,731		207		55.60		1.4	%
2023		134,778		134,778		12,244		89.48		81.6	%
2024		—		—		—		—		—	%
2025		—		—		—		—		—	%
2026		28,246		28,246		2,194		77.66		14.6	%
2027		—		—		—		—		—	%
2028		—		—		—		—		—	%
Thereafter		—		—		—		—		—	%

⁽¹⁾	See page 43 for our definition of this measure.

⁽²⁾	Leases that expire on the last day of the quarter are treated as occupied and are reflected as expiring space in the following quarter.

⁽³⁾	Represents office and retail space only.

- 40 -


		CASH BASIS CAPITAL EXPENDITURES

(unaudited and in thousands)


	Three Months Ended September 30, 2019
	Total		New York		San Francisco		Washington, D.C.		Other

Capital Expenditures: ⁽¹⁾
Expenditures to maintain assets	$	4,680	$	2,721	$	1,369	$	539	$	51
Second generation tenant improvements		3,119		2,694		116		309		—
Second generation leasing commissions		7,916		1,342		6,329		245		—
First generation leasing costs and capital expenditures		2,664		—		2,664		—		—

Total Capital Expenditures	$	18,379	$	6,757	$	10,478	$	1,093	$	51


Redevelopment Expenditures: ⁽¹⁾
1325 Avenue of the Americas (Lobby Renovation and Elevator Modernization)	$	3,166	$	3,166	$	—	$	—	$	—
300 Mission Street (Lobby Renovation)		2,508		—		2,508		—		—
31 West 52nd Street (Lobby Renovation)		435		435		—		—		—
Other		2,368		2,007		361		—		—

Total Redevelopment Expenditures	$	8,477	$	5,608	$	2,869	$	—	$	—


	Three Months Ended September 30, 2018
	Total		New York		San Francisco		Washington, D.C.		Other

Capital Expenditures: ⁽¹⁾
Expenditures to maintain assets	$	2,858	$	2,455	$	354	$	36	$	13
Second generation tenant improvements		22,176		18,887		3,289		—		—
Second generation leasing commissions		5,817		2,196		2,695		926		—
First generation leasing costs and capital expenditures		2,701		1,745		269		687		—

Total Capital Expenditures	$	33,552	$	25,283	$	6,607	$	1,649	$	13


Redevelopment Expenditures: ⁽¹⁾
31 West 52nd Street (Lobby Renovation)	$	3,738	$	3,738	$	—	$	—	$	—
Other		2,247		532		1,715		—		—

Total Redevelopment Expenditures	$	5,985	$	4,270	$	1,715	$	—	$	—

⁽¹⁾	See page 43 for our definition of this measure.

- 41 -


		CASH BASIS CAPITAL EXPENDITURES

(unaudited and in thousands)


	Nine Months Ended September 30, 2019
	Total		New York		San Francisco		Washington, D.C.		Other

Capital Expenditures: ⁽¹⁾
Expenditures to maintain assets	$	15,170	$	8,706	$	5,532	$	804	$	128
Second generation tenant improvements		26,031		20,214		5,128		689		—
Second generation leasing commissions		14,890		5,543		8,790		557		—
First generation leasing costs and capital expenditures		4,317		—		4,317		—		—

Total Capital Expenditures	$	60,408	$	34,463	$	23,767	$	2,050	$	128


Redevelopment Expenditures: ⁽¹⁾
1325 Avenue of the Americas (Lobby Renovation and Elevator Modernization)	$	8,250	$	8,250	$	—	$	—	$	—
300 Mission Street (Lobby Renovation)		6,720		—		6,720		—		—
31 West 52nd Street (Lobby Renovation)		3,921		3,921		—		—		—
Other		4,444		3,645		799		—		—

Total Redevelopment Expenditures	$	23,335	$	15,816	$	7,519	$	—	$	—


	Nine Months Ended September 30, 2018
	Total		New York		San Francisco		Washington, D.C.		Other

Capital Expenditures: ⁽¹⁾
Expenditures to maintain assets	$	9,056	$	7,096	$	988	$	650	$	322
Second generation tenant improvements		48,018		42,325		5,570		123		—
Second generation leasing commissions		15,350		9,616		4,666		1,068		—
First generation leasing costs and capital expenditures		8,071		1,856		3,469		2,746		—

Total Capital Expenditures	$	80,495	$	60,893	$	14,693	$	4,587	$	322


Redevelopment Expenditures: ⁽¹⁾
31 West 52nd Street (Lobby Renovation)	$	15,918	$	15,918	$	—	$	—	$	—
Other		4,879		1,152		3,727		—		—

Total Redevelopment Expenditures	$	20,797	$	17,070	$	3,727	$	—	$	—

⁽¹⁾	See page 43 for our definition of this measure.

- 42 -


		DEFINITIONS

We use and present various non-GAAP measures in this Supplemental Operating and Financial Data report. The following section contains definitions of these measures, describes our use of them and provides information regarding why we believe they are meaningful. Other real estate companies may use different methodologies for calculating these measures, and accordingly, our presentation of these measures may not be comparable to other real estate companies. These non-GAAP measures should not be considered a substitute for, and should only be considered together with and as a supplement to, financial information presented in accordance with GAAP.

Funds from Operations (“FFO”) is a supplemental measure of our performance. FFO is presented in accordance with the definition adopted by the National Association of Real Estate Investment Trusts (“Nareit”). Nareit defines FFO as net income or loss, calculated in accordance with GAAP, adjusted to exclude depreciation and amortization from real estate assets, impairment losses on certain real estate assets and gains or losses from the sale of certain real estate assets or from change in control of certain real estate assets, including our share of such adjustments of unconsolidated joint ventures. FFO is commonly used in the real estate industry to assist investors and analysts in comparing results of real estate companies because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. FFO is not intended to be a measure of cash flow or liquidity. FFO attributable to common stockholders represents the Company’s share of FFO that is attributable to common stockholders and is calculated by reducing from FFO, the noncontrolling interests’ share of FFO in consolidated joint ventures, real estate funds and Operating Partnership.

Core Funds from Operations (“Core FFO”) is an alternative measure of our operating performance, which adjusts FFO for certain other items that we believe enhance the comparability of our FFO across periods. Core FFO, when applicable, excludes the impact of certain items, including, transaction related costs, realized and unrealized gains or losses on real estate fund investments, unrealized gains or losses on interest rate swaps, severance costs and gains or losses on early extinguishment of debt, in order to reflect the Core FFO of our real estate portfolio and operations. In future periods, we may also exclude other items from Core FFO that we believe may help investors compare our results. Core FFO is not intended to be a measure of cash flow or liquidity. Core FFO attributable to common stockholders represents the Company’s share of Core FFO that is attributable to common stockholders and is calculated by reducing from Core FFO, the noncontrolling interests’ share of Core FFO in consolidated joint ventures, real estate funds and Operating Partnership.

Funds Available for Distribution (“FAD”) is a supplemental measure of our operating performance and is calculated as Core FFO adjusted for (i) capital expenditures to maintain assets, (ii) tenant improvements and leasing commissions incurred for second generation leases, (iii) straight-line rent adjustments, (iv) amortization of above and below-market leases, (v) amortization of stock-based compensation expense and (vi) amortization of deferred financing costs. FAD is commonly used in the real estate industry along with cash flow from operating activities as a measure of the ability to generate cash from operations and the ability to fund cash needs and make distributions to our stockholders. FAD provides information regarding our operating performance that would not otherwise be available and is useful to investors and analysts in assessing our operating performance. Additionally, although FAD is not intended to be a liquidity measure, as it does not make adjustments for the changes in working capital, we believe that FAD may provide investors and analysts with useful supplemental information regarding our ability to generate cash from operations and our ability to make distributions to our stockholders. Furthermore, we believe that FAD is frequently used by investors and analysts in evaluating our performance as a REIT. FAD attributable to common stockholders represents the Company’s share of FAD that is attributable to common stockholders and is calculated by reducing from FAD, the noncontrolling interests’ share of FAD in consolidated joint ventures, real estate funds and Operating Partnership.

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre”) is a supplemental measure of our operating performance. EBITDAre is presented in accordance with the definition adopted by Nareit. Nareit defines EBITDAre as GAAP net income (loss) adjusted to exclude interest expense, income taxes, depreciation and amortization expenses, net gains from sales of depreciated real estate assets and impairment losses on depreciable real estate, including our share of such adjustments of unconsolidated joint ventures. EBITDAre provides information regarding our operating performance that would not otherwise be available and may be useful to an investor in assessing our ability to incur and service debt. EBITDAre should not be considered as an indication of our financial performance or a measure of our cash flow or liquidity. We also present PGRE’s share of EBITDAre which represents our share of EBITDAre generated by our consolidated and unconsolidated joint ventures, based on our percentage ownership in the underlying assets.

- 43 -


		DEFINITIONS - CONTINUED

Adjusted EBITDAre is a supplemental measure that is calculated by adjusting EBITDAre to eliminate the impact of the performance of our real estate funds, unrealized gains or losses on interest rate swaps, transaction related costs, gains or losses on early extinguishment of debt and certain other items that may vary from period to period. Adjusted EBITDAre enhances the comparability of EBITDAre across periods. In future periods, we may also exclude other items from Adjusted EBITDAre that we believe may help investors compare our results. We also present PGRE’s share of Adjusted EBITDAre, which represents our share of Adjusted EBITDAre generated by our consolidated and unconsolidated joint ventures based on our percentage ownership in the underlying assets.

Net Operating Income (“NOI”) is used to measure the operating performance of our properties. NOI consists of rental revenue (which includes property rentals, tenant reimbursements and lease termination income) and certain other property-related revenue less operating expenses (which includes property-related expenses such as cleaning, security, repairs and maintenance, utilities, property administration and real estate taxes). We also present Cash NOI which deducts from NOI, straight-line rent adjustments and the amortization of above and below-market leases, including our share of such adjustments of unconsolidated joint ventures. In addition, we present PGRE’s share of NOI and Cash NOI which represents our share of NOI and Cash NOI of consolidated and unconsolidated joint ventures, based on our percentage ownership in the underlying assets. We use NOI and Cash NOI internally as performance measures and believe they provide useful information to investors regarding our financial condition and results of operations because they reflect only those income and expense items that are incurred at property level.

Same Store NOI is used to measure the operating performance of properties that were owned by us in a similar manner during both the current period and prior reporting periods, and represents Same Store NOI from consolidated and unconsolidated joint ventures based on our percentage ownership in the underlying assets. Same Store NOI also excludes lease termination income, impairment of receivables arising from operating leases and certain other items that may vary from period to period. We also present Same Store Cash NOI, which excludes the effect of non-cash items such as the straight-line rent adjustments and the amortization of above and below-market leases.

PGRE’s Share of Total Debt represents our share of debt of consolidated and unconsolidated joint ventures, based on our percentage ownership in the underlying assets. We believe that PGRE’s share of total debt provides useful information to investors regarding our financial condition because it includes our share of debt from unconsolidated joint ventures and excludes the noncontrolling interests’ share of debt from consolidated joint ventures that is attributable to our partners.

Annualized Rent represents the end of period monthly base rent plus escalations in accordance with the lease terms, multiplied by 12.

Leased % represents percentage of square feet that is leased, including signed leases not yet commenced.

Same Store Leased % represents percentage of square feet that is leased, including signed leases not yet commenced, for properties that were owned by us in a similar manner during both the current period and prior reporting periods.

Occupied % represents the percentage of space for which we have commenced rental revenue in accordance with GAAP.

Initial Rent represents the weighted average cash basis starting rent per square foot and does not include free rent or periodic step-ups in rent.

Prior Escalated Rent represents the weighted average cash basis rent (including reimbursements) per square foot at expiration.

Second Generation Space represents space leased that has been vacant for less than twelve months.

Capital Expenditures consist of expenditures to maintain assets, tenant improvement allowances and leasing commissions. Expenditures to Maintain Assets include capital expenditures to maintain current revenues. Second Generation Tenant Improvements and Leasing Commissions represent tenant improvements and leasing commissions incurred in leasing second generation space. First Generation Leasing Costs and Other Capital Expenditures include capital expenditures completed in the year of acquisition and the following two years that were planned at the time of acquisition, as well as tenant improvements and leasing commissions on space leased that has been vacant for more than twelve months. Development Expenditures consist of hard and soft costs related to the development of a property in getting it ready for its intended use.

- 44 -